Office rental forecasts for 2011 in the cities of Warsaw, Paris and London are set to rise in 2011, as average European take up recovers and employment begins to grow.  This international real estate advisor Savills says coincides with a -45% drop in average development completions in 2011, which will accelerate into 33% positive growth in 2012 totalling approximately 2.6 million sq m.

According to Savills data, which examines 15 cities, Warsaw will see the highest rental growth in 2011 at 12.5% with Paris at 5.9% and both the City and West End markets of London seeing 5.3% increases.  Positive rental growth is also forecast in almost all centres; with 3% expected on average by 2011. This follows a recovery in take up of nearly 26% across Europe compared to the first half of 2009.  Only Brussels, Dublin and Amsterdam are forecast to see 0% rental growth.  

Lydia Brissy of Savills European research says: “The forecast rental growth is really very positive news for Europe as some of these cities have recorded rental falls over the past year, following the economic uncertainty caused by the global credit crunch.  Although the development pipeline tap has been turned off for 2011, we will see some significant quantities of space delivered in 2012.”